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Please help me understand the right steps. 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the
Please help me understand the right steps.
2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 200 Market for Goods 180 Quantity 25 Demanded 180 (Units) 140 Demand Price 100.00 (Dollars per unit) 120 100 PRICE (Dollars perunit) 80 Demand 40 20 0 5 0 15 20 25 30 35 40 45 50 QUANTITY (Units)On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 2500 2250 Total Revenue 2000 1750 1500 1250 TOTAL REVENUE (Dollars) 1000 750 500 250 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Number of units) Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $Based on your answers from the previous question, and assuming that the marginal revenue curve is a straight line, use the black line (plus symbol) to plot the firm's marginal revenue curve on the following graph. 200 + 180 160 Marginal Revenue 140 120 100 MARGINAL REVENUE (Dollars) 80 40 20 O 20 -40 5 10 15 20 25 30 35 40 45 50 equal to zero QUANTITY (Units) minimized maximized Comparing your total revenue graph to your marginal revenue graph, you can see that total revenue is at the output at which marginal revenue is equal to zero.\f200 180 160 Marginal Revenue 140 120 MR 100 80 60 40 20 O 5 10 15 20 26 30 35 40 45 50 QuantityStep by Step Solution
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